If you’re considering refinancing your home, you’re probably aware of the importance of having a good credit (FICO) score. Having a good credit score improves your chances of getting a better interest rate on your mortgage. Despite the many TV commercials and tons of online advertisements you’ve seen, improving one’s credit score is often a tedious process.
Enhance Your Credit Score
Many of those “credit quick-fixes” that you see often do more harm than good. However, if you follow the 4 steps listed below, you’ll start to see your credit score climb in a relatively short period of time.
- Consolidate your debt – shifting your debt between different sources won’t improve your credit score. However, if you can consolidate several accounts into one, this can help. You can actually gain a few points on your credit score if you have fewer creditors but the same amount of debt. Since department store cards have higher interest rates, consider transferring those accounts into a single credit card account.
- Pay off a portion of your revolving debt – if possible, pay off some of your credit card debt. Focus on paying off those with the highest interest rate. Talk with a credit expert who can help you develop a credit plan. Just keep in mind that paying off all of your revolving debt and not having anything to show to the credit reporting agencies can negatively impact your credit score.
- Pay your monthly bills on time – staying current with on-time payments is one of the best ways to build a good credit score. There’s nothing you can to eliminate past late payments. However, your current status carries more weight than your past credit history, so pay your bills on time. You might want to consider setting up automatic bill payments on your regular monthly bills. This will ensure that your payments are always on time.
- Review your credit report for errors – this should be your first step towards improving your credit score, so contact the 3 primary credit reporting agencies and request copies of your credit report in order to check them for errors. Check all outstanding balances and ensure that they’re up to date. Furthermore, look at any late payments to see whether or not they were actually late. File disputes with the agencies if you find any errors as fixing them will boost your credit score quickly.
Call us at Florida State Mortgage Group
We would be glad to help you get the best rates when you refinance. For more information on improving your credit score, call Florida State Mortgage Group, Inc. at (954) 359-3000 or visit our website today. Our business representatives are available to assist you.
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Today's Mortgage Rates
